Superannuation Discussion + market volatility

[Pushka]

That said
A mindset of spend and gift means running the capital down at a rate that meets your lifestyle and inheritance goals

And if you have the answer to that one then you won't need to worry about having enough money to retire on. This is of course is the Holy Grail.

 

[serfty]

And if you have the answer to that one then you won't need to worry about having enough money to retire on. This is of course is the Holy Grail.

Of Course ...

Post in thread 'The totally off-topic thread'

Sep 5, 2016

When I die ...

I am planning on living forever ...

... so far, so good.

• NM

• 

 

[serfty]

OK, trying to get some clarity in all this. So I have devised an example. I'm keeping the amounts small to avoid complications with any non-concessional contributions cap.

Mr Retired is 69 years of age and has a superannuation account balance of $300K. They have never made any after tax contribution (neither concessional nor non concessional).

Of that $300K, $10K is listed on their benefit statement as "Tax Free" and $290K as "Taxed".

The entire $300K is withdrawn and deposited into a superannuation account as a "personal after-tax contribution".

So, now then listed on the benefit statement there $300K as Tax Free and $0 as Taxed.

This is converted into a superannuation pension with 6% withdrawal.

In the first year the pension fund earns 10%, and now has a rough balance of $312K ($300K + $30K - $18K).

Does this result in a situation where there is $282K listed as Tax Free and $30K as Taxed?